[Federal Register: December 2, 2003 (Volume 68, Number 231)]
[Proposed Rules]
[Page 67381-67385]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02de03-16]
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Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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[[Page 67381]]
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DEPARTMENT OF AGRICULTURE
Agricultural Marketing Service
7 CFR Part 900
[Docket Number FV03-900-1 PR]
Proposed Rule To Exempt Organic Producers and Marketers From
Assessments for Market Promotion Activities Under Marketing Order
Programs
AGENCY: Agricultural Marketing Service, USDA.
ACTION: Proposed rule.
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SUMMARY: This proposed rule would exempt any person producing and
marketing solely 100 percent organic products from paying assessments
for market promotion, including paid advertising, activities to
marketing order programs administered by the Agricultural Marketing
Service (AMS). AMS has identified 28 marketing order programs for which
assessment exemptions may be established. The authority for this
proposal is section 10607 of the Farm Security and Rural Investment Act
(2002 Farm Bill). The 2002 Farm Bill also covers 16 national research
and promotion programs. The research and promotion programs will be
addressed separately at a later date.
DATES: Comments must be received by January 2, 2004. Pursuant to the
Paperwork Reduction Act, comments on the information collection burden
that would result from this proposal must be received by February 2,
2004.
ADDRESSES: Interested persons are invited to submit written comments
concerning this proposed rule. Comments must be sent to the Docket
Clerk, Marketing Order Administration Branch, Fruit and Vegetable
Programs, AMS, USDA, 1400 Independence Avenue, SW., STOP 0237,
Washington, DC 20250-0237; Fax: (202) 720-8938; or E-mail: moab.docketclerk@usda.gov. All comments should reference the docket
number and the date and page number of this issue of the Federal
Register. All comments received will be made available for public
inspection in the Office of the Docket Clerk at the Marketing Order
Administration Branch, AMS, USDA, Room 2525-South; 1400 Independence
Avenue, SW., Washington, DC 20250-0237 during regular business hours. A
copy of this proposed rule may be found at http://www.ams.usda.gov/fv/moab.html
.
FOR FURTHER INFORMATION CONTACT: George Kelhart or Jay Guerber,
Marketing Order Administration Branch, Fruit and Vegetable Programs,
Agricultural Marketing Service, U.S. Department of Agriculture, 1400
Independence Avenue, SW., STOP 0237, Room 2525-South; Washington, DC
20250-0237; Telephone: (202) 720-2491; Fax: (202) 720-8938; or E-mail: George.Kelhart@usda.gov.
Small businesses may request information on complying with this
regulation by contacting Jay Guerber, Marketing Order Administration
Branch, Fruit and Vegetable Programs, AMS, USDA, 1400 Independence
Avenue, SW., Stop 0237, Washington, DC 20250-0237; telephone: (202) 720-2491; Fax: (202) 720-8938; or E-mail: Jay.Guerber@usda.gov.
SUPPLEMENTARY INFORMATION:
Executive Order 12866
This proposed rule is being issued by the Department of Agriculture
(USDA) in conformance with Executive Order 12866.
Executive Order 12988
This proposed rule has been reviewed under Executive Order 12988,
Civil Justice Reform. It is not intended to have retroactive effect.
This proposed rule would not preempt any state or local laws,
regulations, or policies, unless they present an irreconcilable
conflict with this rule.
The Agricultural Marketing Agreement Act of 1937 (7 U.S.C. 601-
674)(Act), under which the 28 marketing order programs are established,
provides that administrative proceedings must be exhausted before
parties may file suit in court. Under the Act, any person subject to an
order may file a petition with the Secretary of Agriculture stating
that the order, any provision of the order, or any obligation imposed
in connection with the order is not in accordance with law and request
a modification of the order or to be exempted therefrom. The petitioner
is afforded the opportunity for a hearing on the petition. After the
hearing, the Secretary will make a ruling on the petition. The Act
provides that the district courts of the United States in any district
in which the person is an inhabitant, or has his principal place of
business, has jurisdiction to review the Secretary's ruling, provided a
complaint is filed within 20 days from the date of the entry of the
ruling.
The authority for this proposed rule is specified in section 10607
of the Farm Security and Rural Investment Act (Pub. L. 107-171; 2002
Farm Bill). The 2002 Farm Bill was enacted May 13, 2002. Section 501 of
the Federal Agriculture Improvement and Reform Act of 1996 (FAIR Act; 7
U.S.C. 7401) was amended by the 2002 Farm Bill. This amendment exempts
any person that produces and markets solely 100 percent organic
products, and that does not produce any conventional or non-organic
products, from paying assessments under a commodity promotion law with
respect to any agricultural commodity that is produced on a certified
organic farm as defined in section 2103 of the Organic Foods Production
Act of 1990 (7 U.S.C. 6502). The amendment further requires the
Secretary of Agriculture to amend any market research and promotion
regulations to reflect this exemption.
USDA is proposing amendments to general regulations affecting 28
marketing order programs established under the Act for which it has
oversight. These amendments would establish provisions for organic
producers and marketers meeting the specified criteria to be exempt
from paying assessments for market promotion, including paid
advertising, activities.
The FAIR Act amendment covers 28 marketing order programs
established under the Act (Texas citrus--7 CFR part 906; Florida
avocados--7 CFR part 915; California nectarines--7 CFR part 916;
California peaches and pears--7 CFR part 917; Washington apricots--7
CFR part 922; Washington sweet cherries--7 CFR part 923; Washington/
Oregon fresh prunes--7 CFR part 924; Southeastern California grapes--7
CFR part 925; Oregon/Washington winter pears--7 CFR part 927;
cranberries grown in States of Massachusetts, et al.--7 CFR part 929;
tart cherries grown in States of Michigan, et al.--7 CFR part 930;
Oregon/Washington Bartlett pears--7
[[Page 67382]]
CFR part 931; California olives--7 CFR part 932; Oregon/California
potatoes--7 CFR part 947; Colorado potatoes--7 CFR part 948; Georgia
Vidalia onions--7 CFR part 955; Washington/Oregon Walla Walla onions--7
CFR part 956; Idaho-Eastern Oregon onions--7 CFR part 958; Texas
onions--7 CFR part 959; Florida tomatoes--7 CFR part 966; Texas
melons--7 CFR part 979; California almonds--7 CFR part 981; Oregon-
Washington hazelnuts--7 CFR part 982; California walnuts--7 CFR part
984; Far West spearmint oil--7 CFR part 985; California dates--7 CFR
part 987; California raisins--7 CFR part 989; and California dried
prunes--7 CFR part 993).
These marketing order programs allow for promotion activities
designed to assist, improve, or promote the marketing, distribution, or
consumption of the commodity covered under the marketing order program.
Some of these programs also authorize market promotion in the form of
paid advertising. Promotion, including paid advertising, activities are
paid for by assessments levied on handlers regulated under the various
marketing orders.
Under this proposal, a new subpart would be added in 7 CFR part 900
General Regulations to specify the criteria for identifying persons
eligible to obtain an assessment exemption for market promotion,
including paid advertising; procedures for persons to apply for an
exemption; procedures for calculating the assessment exemption; and
other procedural details for the applicable marketing orders.
Prior to or during the assessment period, the person would submit
an application for exemption to the applicable committee or board. The
application would be reviewed by the committee or board to determine
whether the applicant is eligible for an assessment exemption. If the
application is disapproved, the marketing order committee or board will
notify the handler of the reason(s) for disapproval. The Secretary may
review any decisions made by the committees or boards at his/her
discretion.
The marketing order's committee or board would compute the
assessment rate for any person approved for an organic exemption. The
exempt rate would be computed by dividing the committee's or board's
estimated non-marketing promotion expenditures by the committee's or
board's estimated total expenditures for the same assessment period, as
approved by the Secretary, and applying that percentage to the
assessment rate applicable to all persons for the assessment period.
Within 30 days following the applicable assessment period, the
committee or board would re-compute the assessment rate for persons
exempt under the section, based on the actual expenditures incurred
during the assessment period. The exempt person would pay an additional
assessment or be reimbursed or credited by the committee or board for
the amount overpaid.
Who Is Eligible for Exemption?
To be eligible for an exemption, the person must be subject to an
assessment under a designated marketing order program. All of the
marketing order programs assess handlers; i.e., persons that handle the
regulated commodity.
The FAIR Act amendment specifies that to be exempt from a commodity
promotion assessment, a person--meaning an individual, group of
individuals, corporation, association, cooperative, or other business
entity--must produce and market solely 100 percent organic products and
must not produce any non-organic or conventional products. For purposes
of this proposed rule, ``produce'' means to grow or produce food, feed,
livestock, or fiber or to receive food, feed, livestock, or fiber, and
alter that product by means of feeding, slaughtering, or processing.
Under this proposed rule, handlers, and processors and producers acting
as handlers may be eligible for exemption if they meet the definition
of ``produce'' as outlined in this proposed rule. This proposed rule
provides for assessment exemptions for those regulated under marketing
orders for domestic commodities. Thus, importers subject only to
section 8e import regulations would not pay marketing order assessments
and would not be eligible for an assessment exemption. Additionally, to
be exempt, such persons must possess certification from a USDA-
accredited certifying agent that the farm or handling operation meets
the requirements of 100 percent organic as defined in section 2103 of
the Organic Foods Production Act of 1990 (7 U.S.C. 6502).
Examples
[sbull] A grower who produces and markets (handles) 100 percent
certified organic, is certified as an organic handling operation, and
pays the marketing order assessments, is eligible for an exemption for
the portion of the assessments used for marketing promotion.
[sbull] A handler receives 100 percent of the commodity as
certified organic and is certified as an organic handling operation.
The handler alters (e.g., shells, slices, processes, or in some other
way alters) the commodity and pays marketing order assessments. The
handler is eligible for an exemption for the portion of the assessments
used for marketing promotion.
[sbull] A grower who produces and markets (handles) both certified
organic and conventional commodities is not eligible for the exemption
because that person is not producing and marketing solely 100 percent
certified organic commodities.
[sbull] A handler receives 100 percent of a commodity that is
organic, and the handler is certified as an organic handling operation.
The handler sorts, packages, markets, and pays assessments on the
commodity. The handler is not eligible for the exemption because the
handler did not alter (e.g., shell, slice, process, or in some other
way alter) the commodity.
The FAIR Act amendment also covers 16 national research and
promotion programs. The research and promotion programs will be
addressed separately at a later date. The 16 programs cover
blueberries, beef, cotton, dairy, eggs, fluid milk, Hass avocados,
honey, lamb, mushrooms, peanuts, popcorn, pork, potatoes, soybeans, and
watermelons.
Initial Regulatory Flexibility Analysis
Pursuant to requirements set forth in the Regulatory Flexibility
Act (5 U.S.C. 601 et seq.) (RFA), the Agricultural Marketing Service
(AMS) has considered the economic impact of this rule on small
entities. Accordingly, AMS has prepared this initial regulatory
flexibility analysis.
The purpose of the RFA is to fit regulatory actions to the scale of
business subject to such actions in order that small businesses will
not be unduly or disproportionately burdened. Marketing orders issued
pursuant to the Act, and the rules issued thereunder, are unique in
that they are brought about through group action of essentially small
entities acting on their own behalf. Thus, both statutes have small
entity orientation and compatibility.
As previously mentioned, assessments under the 28 marketing order
programs are paid by handlers regulated under the various marketing
orders. There are approximately 850 handlers regulated under the 28
marketing orders. USDA does not have precise numbers, but believes
there may be approximately 84 persons who produce and market solely 100
percent organic products that might be exempt from paying assessments
for market promotion, including paid advertising, under the 28
marketing order programs administered by AMS. Thus, the
[[Page 67383]]
estimated number of prospective applicants eligible for the assessment
exemption may only represent approximately 9.9 percent of the total
handler population.
Small agricultural service firms are defined by the Small Business
Administration (13 CFR 121.201) as those whose annual receipts are less
than $5,000,000. Although the exact size of the potential applicants is
not known, USDA believes that the majority of persons who might qualify
for an exemption may be classified as small entities.
Section 501 of the Federal Agriculture Improvement and Reform Act
of 1996 (FAIR Act) was amended on May 13, 2002 (7 U.S.C 7401). The
amendment provides that notwithstanding any provision of a commodity
promotion law, a person that produces and markets solely 100 percent
organic products, and that does not produce any conventional or non-
organic products, shall be exempt from paying assessments under a
commodity promotion law with respect to any agricultural commodity that
is produced on a certified organic farm as defined in section 2103 of
the Organic Foods Production Act of 1990 (7 U.S.C. 6502). The amendment
further requires the Secretary of Agriculture to amend any research and
promotion regulations to reflect this exemption.
USDA is proposing amendments to the general regulations affecting
28 marketing order programs established under the Act for which it has
oversight. These amendments would establish provisions for organic
producers and marketers meeting the specified criteria to be exempt
from paying assessments for market promotion, including paid
advertising.
The 28 marketing order programs allow for promotion activities
designed to assist, improve, promote, the marketing, distribution, or
consumption of the commodity covered under the marketing order. Some of
the orders also include authority for paid advertising activities.
Market promotion, including paid advertising, activities are paid for
by assessments levied on handlers regulated under the various marketing
orders.
Under this proposal, a new subpart would be added in 7 CFR Part 900
General Regulations to specify criteria for identifying persons
eligible to obtain an assessment exemption for marketing promotion,
including paid advertising; procedures for applying for an exemption;
procedures for calculating the assessment exemption; and other
procedural details for the applicable marketing orders.
Regarding the impact of this proposed rule on affected entities,
this rule would impose minimal additional costs incurred in filing the
exemption application and in maintaining records needed to verify the
applicant's exemption status during applicable assessment period. Such
applicants will be required to submit an application and receive
approval from the applicable committee or board to obtain the
assessment exemption. USDA estimates that each applicant will submit
one application annually. The annual burden for all of the marketing
order industries is estimated to total about 42 hours.
The cost burden associated with the information collection would be
$420 for all applicants, or $5.00 per applicant. The total cost has
been estimated by multiplying the burden hours associated with the
exemption application by $10.00 per hour, a sum deemed reasonable
should the applicants be compensated for their time.
Since this action potentially exempts from assessments agricultural
producers and marketers, AMS believes that this rule would have a
beneficial economic effect on exempted entities by reducing their
assessment payments. During the 2001-2002 marketing season, assessments
for the 28 marketing orders totaled $44,400,000. Of that amount, about
$29,900,000 (or 65 percent) was made available for marketing promotion,
including paid advertising, activities. USDA does not have precise
information, but believes that about 1 percent on average of the total
assessments are for certified organic commodities. Thus, assessments on
organic commodities could total about $440,000. Of that amount, about
$299,000 for marketing promotion, including paid advertising, might be
exempt under this proposed rule if all of the approximate 84 handlers
of the regulated commodities were eligible for the assessment exemption
as specified in the proposed rule.
Based on our estimate that there might be a total of 84 handlers
exempt from assessments for marketing promotion activities conducted
under the various marketing orders, the assessments for eligible
persons would be reduced by an average of almost $3,600 ($299,000
divided by 84) on an annual basis.
There is some variation among the 28 marketing orders on the
percent of assessments used for marketing promotion, including paid
advertising. Thus, the actual reduction in assessments would vary among
the various orders. In fact, the amounts allocated for marketing
promotion as a percentage of the total marketing order budgets range
from less than 5 percent to almost 60 percent.
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), the reporting and recordkeeping provisions that would be
generated by this proposed rule will be submitted to the Office of
Management and Budget (OMB) under OMB No. 0581-NEW. As explained later,
USDA plans to request emergency approval.
As with all Federal marketing order programs, reports and forms are
periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies. In addition, USDA
has not identified any relevant Federal rules that duplicate, overlap,
or conflict with this rule.
There are no viable alternatives to proposing these organic
assessment exemption procedures. The FAIR Act requires USDA to take
this action to lessen the assessment costs for persons who produce and
market solely 100 percent organic products. In drafting the exemption
procedures, every effort has been made to minimize the burden on the
persons impacted, and to simplify the process. The anticipated
assessment reductions for eligible persons are expected to greatly
outweigh the additional costs related to the reporting required.
A small business guide on complying with fruit, vegetable, and
specialty crop marketing agreements and orders may be viewed at: http://www.ams.usda.gov/fv/moab.html.
Any questions about the compliance
guide should be sent to Jay Guerber at the previously mentioned address
in the FOR OTHER INFORMATION CONTACT section.
A 30-day comment period is provided for interested persons to
submit written comments on the criteria for identifying persons
eligible to obtain an assessment exemption, and the procedural details
for obtaining an assessment exemption under the various marketing
orders. Thirty days is deemed appropriate because this action was
mandated by Congress under the 2002 Farm Bill and is intended to
provide relief to producers and marketers of solely 100 percent organic
products. Pursuant to the Paperwork Reduction Act, comments on the
information collection burden must be received within 60 days after the
date of publication of this proposal in the Federal Register.
Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
chapter 35), this notice also announces
[[Page 67384]]
that AMS is seeking emergency approval for a new information collection
request enabling organic producers and marketers to apply for
exemptions from paying market promotion assessments under the following
28 Federal marketing orders: 7 CFR parts 906, 915, 916, 917, 922, 923,
924, 925, 927, 929, 930, 931, 932, 947, 948, 955, 956, 958, 959, 966,
979, 981, 982, 984, 985, 987, 989, and 993. The emergency request is
necessary because insufficient time is available to follow normal
clearance procedures.
Title: Organic Producer and Marketer Market Promotion Assessment
Exemption under 28 Federal Marketing Orders.
OMB Number: 0581-NEW.
Type of Request: New collection.
Abstract: Marketing order programs provide an opportunity for
producers of fresh fruits, vegetables and specialty crops to solve
marketing problems that cannot be solved individually. Order
regulations help ensure adequate supplies of high quality products for
consumers and adequate returns to producers. Under the Act, orders may
authorize production and marketing research, including paid
advertising, as mentioned earlier. Production and marketing research
and development, including paid advertising, activities to promote the
various commodities are paid for with assessments levied on handlers
regulated under the 28 Federal marketing orders.
On May 13, 2002, section 501 of the FAIR Act was amended (7 U.S.C.
7401) to exempt any person that produces and markets solely 100 percent
organic products, and that does not produce any conventional or non-
organic products, from paying assessments under a commodity promotion
law with respect to any agricultural commodity that is produced on a
certified organic farm as defined in Section 2103 of the Organic Foods
Production Act of 1990 (7 U.S.C. 6502).
To be exempt from paying assessments for marketing promotion,
including paid advertising expenses, under the specified marketing
orders, the certified organic producer and marketer would submit an
application, ``Certified Organic Producer and Marketer Application for
Exemption from Market Promotion Assessments Paid Under Federal
Marketing Orders'' to the marketing order committee or board. The
application would need to be submitted to the committee or board prior
to or during the applicable assessment period, and annually thereafter,
as long as the applicant continues to be eligible for the exemption.
This application would include the applicant's name, name and address
of the company, telephone and fax numbers, a copy of the applicant's
organic farm or organic handling operation certificate provided by a
USDA-accredited certifying agent under the Organic Foods Production Act
of 1990 (7 U.S.C. 6502), and a signed certification that the applicant
meets all of the requirements specified for an assessment exemption.
The burdens associated with obtaining the certifications under the
Organic Foods Production Act of 1990 have already been approved by OMB
under OMB Control No. 0581-0181.
If the applicant complies with these requirements and is eligible
for a market promotion assessment exemption, the committee or board
would approve the exemption and notify the applicant within 30 days of
receiving the applicant's application. The Secretary may review any
decisions made by the committees or boards at his/her discretion.
The respective marketing orders (e.g., 7 CFR 932.61 and 7 CFR
981.70) also provide that handlers maintain, and make available, all
records necessary to demonstrate compliance with order requirements for
two years. The burdens on handlers for such recordkeeping requirements
are included in the information collection requests previously approved
by OMB for the respective marketing orders under the following OMB
Control Numbers: OMB No. 0581-0178 for marketing order Nos. 947, 948,
955, 956, 958, 959, 966, 979, 982, 984, 987, 989, and 993; OMB No.
0581-0189 for marketing order Nos. 906, 915, 916, 917, 922, 923, 924,
925, 927, 929, 930, and 931; OMB No. 0581-0142 for marketing order No.
932; OMB No. 0581-0071 for marketing order No. 981; and OMB No. 0581-
0065 for marketing order No. 985.
The information collection would be used only by authorized
representatives of USDA, including AMS, Fruit and Vegetable Programs'
regional and headquarters staff, and authorized Committee and Board
employees. Authorized Committee and Board employees will be the primary
users of the information, and AMS will be the secondary user.
The request for approval of the new information collection under
the 28 Federal marketing orders is as follows:
Form FV-649, Certified Organic Producer and Marketer Application for
Exemption From Marketing Promotion Assessments Paid Under Federal
Marketing Orders
Estimate of Burden: Public reporting burden for this collection of
information is estimated to average 30 minutes per response.
Respondents: Eligible Certified Organic Producers and Marketers.
Estimated Number of Respondents: 84.
Estimated Number of Responses per Respondent: 1
Estimated Total Annual Burden on Respondents: 42 hours.
Comments: Comments are invited on: (1) Whether the collection of
information is necessary for the proper performance of the functions of
the agency, including whether the information will have practical
utility; (2) the accuracy of the agency's estimate of the burden of the
collection of information, including the validity of the methodology
and assumptions used; (3) ways to enhance the quality, utility, and
clarity of the information to be collected; and (4) ways to minimize
the burden of the collection of information on those who are to
respond, including the use of appropriate automated, electronic,
mechanical, or other technological collection techniques of other forms
of information technology.
A sixty-day period is provided to comment on the information
collection burden. Comments should reference OMB No. 0581-NEW and be sent to moab.docketclerk@usda.gov. All comments received will be
available for public inspection during regular business hours at the
same address.
All responses to this rule will be summarized and included in the
request for OMB approval. All comments will become a matter of public
record. As with all Federal marketing order programs, reports and forms
are periodically reviewed to reduce information requirements and
duplication by industry and public sector agencies.
List of Subjects in 7 CFR Part 900
Administrative practices and procedures, Freedom of information,
Marketing agreements, Reporting and recordkeeping requirements.
For the reasons set forth in the preamble, 7 CFR part 900 is
proposed to be amended to read as follows:
PART 900--GENERAL REGULATIONS
1. The authority citation for part 900 is revised to read as
follows:
Authority: 7 U.S.C. 610 and 7 U.S.C. 7401.
2. Add a new subpart heading ``Assessment Exemptions'' after Sec.
900.601, and add a new Sec. 900.700 to read as follows:
[[Page 67385]]
Sec. 900.700 Exemption from assessments.
(a) This section specifies criteria for identifying persons
eligible to obtain an assessment exemption for marketing promotion,
including paid advertising, and procedures for applying for an
exemption for 7 CFR parts 906, 915, 916, 917, 922, 923, 924, 925, 927,
929, 930, 931, 932, 947, 948, 955, 956, 958, 959, 966, 979, 981, 982,
984, 985, 987, 989, and 993. For the purposes of this section, the term
``assessment period'' means fiscal period, fiscal year, crop year, or
marketing year as defined under these parts; the term ``marketing
promotion expenditures'' mean expenses incurred under the various
marketing order for marketing research and development projects, and
marketing promotion, including paid advertising, designed to assist,
improve, or promote the marketing, distribution, and consumption of the
applicable commodity.
(b) Any handler that produces and markets solely 100 percent
organic products produced on a certified organic farm as defined in
section 2103 of the Organic Foods Production Act of 1990 (7 U.S.C.
6502) and the regulations issued under that Act, is subject to
assessments under a part or parts specified in paragraph (a) of this
section, and does not produce or market any conventional or non-organic
products shall be exempt from the portion of the assessment applicable
to marketing promotion, including paid advertising. For purposes of
this section, produce means to grow or produce food, feed, livestock,
or fiber or to receive food, feed, livestock, or fiber and alter that
product by means of feeding, slaughtering, or processing. Any handler
so exempted shall be obligated to pay the portion of the assessment for
other authorized activities under such part or parts.
(c) To be exempt from paying assessments for these purposes under a
part or parts, the handler shall submit an application to the committee
or board established under the applicable part or parts prior to or
during the assessment period. This application shall include the
handler's name and address, the name and address of the company,
telephone and fax numbers, a copy of the organic farm or organic
handling operation certificate(s) provided by a USDA-accredited
certifying agent under the Organic Foods Production Act of 1990 (7
U.S.C. 6502) for the purposes specified in paragraph (b) of this
section, and the handler's certification that the handler meets all of
the applicable requirements for an assessment exemption as provided in
this section. The handler shall file the application with the committee
or board, prior to or during the applicable assessment period, and
annually thereafter as long as the handler continues to be eligible for
the exemption. If the handler complies with these requirements and is
eligible for an assessment exemption, the committee or board will
approve the exemption and notify the handler within 30 days of
receiving the handler's application. If the application is disapproved,
the committee or board will notify the handler of the reason(s) for
disapproval. The Secretary may review any decisions made by the
committees or boards at his/her discretion.
(d) The applicable assessment rate for any handler approved for an
exemption shall be computed by dividing the committee's or board's
estimated non-marketing promotion expenditures by the committee's or
board's estimated total expenditures approved by the Secretary and
applying that percentage to the assessment rate applicable to all
persons for the assessment period. The Secretary shall review the
assessment rate for eligible persons and, if appropriate, approve the
assessment rate.
(e) Within 30 days following the applicable assessment period, the
committee or board shall re-compute the applicable assessment rate for
handlers exempt under this section based on the actual expenditures
incurred during the applicable assessment period. The Secretary shall
review, and if appropriate, approve any change in the rate applicable
to exempt handlers.
(f) When the requirements of this section for exemption no longer
apply to a handler, the handler shall inform the committee or board
immediately and pay the full assessment on all remaining assessable
product for all committee or board assessments from the date the
handler no longer is eligible to the end of the assessment period.
Dated: November 25, 2003.
A.J. Yates,
Administrator,
Agricultural Marketing Service.
[FR Doc. 03-29958 Filed 12-1-03; 8:45 am]
BILLING CODE 3410-02-P